Front suspension issue

Is the car sitting on the ground? That Item you have circled is a rebound bumper. That is not your problem though if the car is jacked up which may be the case since the upper A-arm is against it,that rubber bumper will limit the drop of the suspension and that angle won't be as extreme. You need to check the upper control arm bushings at the frame. Also need to check upper and lower ball joints for play.